All eyes will be on the bank’s stocks on Monday after AU Small Finance Bank announced its financial year 2025-26 (Q1 FY26) results.
The bank’s net profit rose 15.58% y-o-y to ₹580.86 crore in the June quarter of FY26 as against ₹502.57 crore in the same period last year.
During the quarter under review, the net interest income (NII) of the scheduled commercial bank stood at ₹2,045 crore y-o-y, up 6.45% to ₹1,921 crore from ₹1,921 crore in Q1 FY25, a regulatory filing said on Saturday.
AU Small Finance Bank’s asset quality witnessed a deterioration, and its gross non-performing assets (GNPA) rose to 2.47% during the quarter, as against 1.78% in Q1 FY25. Moreover, its net NPA also rose to 0.88% from 0.63% in the same quarter a year ago.
As a result, provisions and contingencies nearly doubled to ₹533 crore during the first quarter, as against ₹283 crore a year ago. Its provision coverage ratio (PCR) stood at 83% at the end of June quarter of FY26.
The bank’s capital adequacy ratio declined to 19.42% from 20.11% in the same quarter of FY25.
Its total deposits stood at ₹1.28 lakh crore as of June 30, 2025, representing a 31% year-on-year growth from ₹97,290 crore in the same period last year. The bank’s current account savings account (CASA) deposits grew 16% year-on-year to ₹37,241 crore. The CASA ratio stood at 29.2%.
Commenting on the first quarter results, Sanjay Aggarwal, Founder, Managing Director and Chief Executive Officer, AU Small Finance Bank, said: “India’s economy stands at a critical juncture. On the one hand, the policy environment has turned favourable—with easing inflation, excess liquidity, upcoming CRR cuts, maintained fiscal prudence, and expectations of a good monsoon. On the other hand, economic momentum remains uneven, and signs of demand recovery are still visible across sectors. Global geopolitical uncertainty continues to pose risks, but the resilience of India’s domestic economy provides a strong counterbalance.”
Aggarwal further added, “At AU Small Finance Bank, we remain cautious and optimistic. Our focus is on building a sustainable, broad-based franchise by deepening customer relationships, expanding our distribution area and maintaining strong credit discipline. We have consistently performed well in seasonally weak quarters, delivering sustainable growth in deposits, assets and profitability. We believe that as the economic cycle strengthens, AU is well positioned to navigate near-term uncertainties, while remaining committed to its long-term vision of building a Forever Bank that can truly expand with sustainability.”
On Friday, July 18, shares of AU Small Finance Bank closed 0.83% lower at ₹790.30 per share on the National Stock Exchange (NSE).
According to NSE data, the total market capitalisation of the bank as of July 20, 2025 was ₹58,892.60 crore.
